Basically, I had to repeat the same step but for the team site hosted on the MOSS server. Once I added the MOSS server as the trusted site on IE, the reports started displaying.

Again, this will fix your issue only when all other permissions are set properly on Reporting Services and MOSS. Don't forget that in win2008 you have to start the browser as "Run as administrator" to see TfsReportDS & TfsOlapReportDS links on RS portal.